Payment Cards in Ireland 2007

Published by: Datamonitor

Published: Feb. 6, 2008 - 69 Pages

Table of Contents

Overview

Catalyst

Summary

Executive Summary

Introduction

Market context

Competitor and product overview

Forecasting the payment card market in Ireland

Table of Contents

Table of figures

Table of tables

INtroduction

What is this report about?

Scope of the report

Structure of report

Market Context

Introduction

Country overview

Demographics

Economy

GDP

Sectoral composition of the economy

Inflation

Distribution of income (GINI Coefficient)

Unemployment

Market size

Penetration of cards

Cards in issue

Number of transactions

Frequency of use

Value of card transactions

Average transaction values

Balances outstanding

Card acceptance

ATM statistics

POS statistics

Market structure

Commercial banks

Building societies

Regulatory environment

Industry regulators

Central Bank and Financial Services Authority of Ireland (CBFSAI)

Industry associations

Irish Bankers' Federation (IBF)

Irish Payment Services Organization (IPSO)

Other noteworthy organizations

Irish Bank Officials Association (IBOA)

Credit bureaus

Irish Credit Bureau (ICB)

Experian

Regulatory issues in the market

European Consumer Credit Directive (CCD)

Despite being well intentioned, there are key problems with the directive

Stamp duty on payment cards

Consumer Protection Code

Unsolicited contact will be restricted

Key issues

SEPA

After missing the original deadline banks have agreed a new SEPA start date

Laser domestic cards are compliant with SEPA Cards Framework in time for migration in 2008

Irish issuers are starting to roll out SEPA-compliant debit cards

Fraud and EMV

Competitor and Product Overview

Introduction

Card scheme market shares

Pay now cards

Cards in issue

Value of transactions

Credit cards

Cards in issue

Value of transactions

Charge cards

Cards in issue

Value of transactions

Card issuer market shares

Debit cards

Cards in issue

Credit cards

Cards in issue

Balances outstanding

Charge and deferred debit cards

Cards in issue

Competitor developments

Consolidation of the Irish market

Some domestic banks have looked outside Ireland for expansion

New entrants

Danske Bank buys National Irish Bank from National Australia Bank

Fortis and An Post enter into joint-venture to provide retail banking services

Product analysis

Credit card design

Credit card features and fees vary according to the card issuer

Loyalty programs

Points-based loyalty programs

Cashback loyalty programs

Cards linked to airline reward program

Product innovation

Several issuers introduced cards with alternative designs and feel

Bank of Ireland offers 2-in-1 credit card

AIB offers a 'be' MasterCard/Visa card, which rewards customers who use their card

Prepaid cards are starting to make their mark

Forecasting the Payment Card Market in Ireland

Introduction

Forecasting the pay now card market

Forecasting the credit card market

Forecasting the charge card market

Conclusions

The Irish market is growing strongly and is becoming more competitive

The Irish market is dynamic and has scope for future growth

Irish issuers are committed to SEPA migration

Stamp duty levied on payment cards is set to be cut

The Irish market is becoming more competitive

APPENDIX

Supplementary data

Market context

Forecasting the payment card market in Ireland

Definitions

AAGR

Affinity card

CAGR

Co-branded card

Credit card

Deferred debit and charge card

EMV

EPC

ePurse

Merchant Service Charge

Pay now cards

PoS terminal

Private label cards

Methodology

Cards and Payments Database

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: GDP per capita for selected European countries, 2006

Table 2: GINI Coefficient for selected European countries

Table 3: Interest rates, annual fees and interest free period on selected credit cards, 2008

Table 4: Fees and limits for the 3V Visa prepaid vouchers, 2008

Table 5: Datamonitor's forecast for the pay now card market, 2007-11f

Table 6: Datamonitor's forecast for the credit card market, 2006-11f

Table 7: Datamonitor's forecast for the charge card market, 2006-11f

Table 8: Population numbers and demographic splits in Ireland and other major European countries, 2006

Table 9: Population over 20 in Ireland and other major European countries, 2006

Table 10: GDP at current rates across European countries, 2006

Table 11: Real GDP growth rates based on constant rates to 2000, 2002-06

Table 12: Inflation in selected European countries, 2002-06

Table 13: The total number of ATM terminals and the number of people per ATM, 2002-06

Table 14: The total number of POS terminals and the number of people per terminal, 2002-06

Table 15: Penetration level of cards in selected European countries, 2006

Table 16: Credit card balances outstanding, 2002-06

Table 17: Pay now card forecasts indexed to 2006

Table 18: Credit card forecasts indexed to 2006

Table 19: Charge card forecasts indexed to 2006

Table 20: Current relevant Datamonitor publications, 2007

Table 21: Future relevant Datamonitor publications, 2008

List of Figures

Figure 1: Overview of Ireland, 2006

Figure 2: Ireland has one of the smallest populations in Europe, 2006

Figure 3: Ireland has one of the lowest proportions of population over the age of 20 in Europe, 2006

Figure 4: Ireland has the smallest economy among the sample of European countries shown, 2006

Figure 5: Services and agricultural sectors are the major contributors to Ireland's GDP, 2002

Figure 6: Inflation in Ireland has been rising in since 2004, 2002-06

Figure 7: The penetration of cards in Ireland is lower then in the majority of countries in Western Europe, 2006

Figure 8: In terms of card numbers, pay later cards are becoming increasingly dominant, 2002-06

Figure 9: Pay now cards dominate in terms of transaction numbers, 2002-06

Figure 10: Pay now cards are used much more frequently than pay later products, 2002-06

Figure 11: The value of credit card transactions is growing ever more quickly, 2002-06

Figure 12: Average transaction values are highest on credit cards, 2002-06

Figure 13: Credit card balances outstanding grew by CAGR 15.9% over 2002-06

Figure 14: The ATM network in Ireland has grown significantly over the last five years, 2002-06

Figure 15: POS terminal network in Ireland has improved in 2006, 2002-06

Figure 16: Regulatory overview of Ireland, 2006

Figure 17: The proportion of Laser cards that are dual-badged with Maestro is 23.9%, 2002-06

Figure 18: Maestro-branded pay now cards account for 41% of pay now transaction values, 2002-06

Figure 19: Visa is dominant scheme in terms of credit card numbers, 2002-06

Figure 20: Visa is the leader in terms of value of transactions, 2002-06

Figure 21: Visa dominates the charge card market in Ireland, 2002-06

Figure 22: Visa also dominates charge card spend, 2002-06

Figure 23: Allied Irish Bank dominates the pay now market, 2006

Figure 24: Allied Irish Bank dominates the credit card market in terms of cards in issue, 2006

Figure 25: Allied Irish Bank is also the leading credit card issuer in terms of balances outstanding, 2006

Figure 26: Allied Irish Bank is also the leading charge card issuer in terms of balances outstanding, 2006

Figure 27: Mergers and acquisitions in the Irish banking market, 2000-07

Figure 28: Examples of credit cards linked to reward programs in the Irish market, 2006

Figure 29: Increased card usage and spend will drive the pay now market, 2006-11f

Figure 30: Increased card usage will drive the credit card market, 2006-11f

Figure 31: The charge card market is expected to decline over the coming years, 2006-11f

Abstract

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